Vodafone Tiscali takeover bid rumoured

Vodafone is considering buying a major UK internet service provider according to a report in the Sunday Telegraph yesterday.

According to the article, the mobile phone company, which is set to announce the conclusions of a far-reaching strategic review next month, is understood to have identified Tiscali's UK operation, which has 1m broadband customers, as one possible acquisition target.

Any take-over would be in response to an expected move by Orange to offer "free" residential broadband to its mobile customers through Wanadoo, its sister company.

An executive with knowledge of Vodafone's plans said: "The company knows it will only be able to prosper by offering a suite of products".

While Vodafone declined to comment on any plan to buy an ISP to the newspaper, Reuters is reporting that a spokesperson for Vodafone said:

"This is pure speculation."

The article goes on to report that if Vodafone don't go ahead with a proposal to acquire Tiscali, the company might look at buying Bulldog, the beleaguered broadband operator owned by Cable & Wireless.

Pocket-lint was unable to get in touch with anybody at Vodafone for a comment at the time of writing.